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I believe MY 04 and on, gets you XDrive, which is a much smoother and effective use of AWD, if that's a "winter consideration" in your Jersey area. MY04 is also the facelifted model, if that matters.
I would generally go for newer, but the conumdrum is price with newer, which may equate to less options/stuff on your pick, price-wise.
As for that "manual" feature! I like our 5 Sd but it has its own constrictions...I've driven the newer 6 Spd manual and it's "better", espc. at highway cruising speeds. Neither are "fun" in stop and go...my Vette is a dream by comparison, gear box and shifting-wise. The real prob will be finding one. But, if you do, I would hammer the crap outta the dlr or priv. seller, as the demand for manual trans X5s is Very low, imo.
Also, you didn't mention it, but I'd rec'd Sport Pkg for the firmer susp. and better handling, at the trade off of firmness/choppines. Go to a BeamER Stlr and drive both sport and non-sport for comparos.
GL, in your search.
BR,md
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